If the sales price of Product X is $24.00 per unit and unit fixed cost is $7.50,its contribution margin per unit is $16.50.

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting the unit variable cost from the sales price per unit. Since only the fixed cost is provided, without the variable cost, we cannot directly calculate the contribution margin. However, the statement implies a calculation that does not consider variable costs, leading to an incorrect interpretation of contribution margin.

If the Sales Price of Product X Is $24